Bringing Sanitation to the Base of the Pyramid

Commitment by

World Toilet Organization

In 2008 the World Toilet Organization committed to coordinate sanitation delivery in Kampong Chnnand, Cambodia by linking market players and existing stakeholders to create an efficient and sustainable sanitation marketplace, creating demand, strengthening value chains, and innovating new products and business models. The WTO's Base of the Pyramid approach was designed to scale up sanitation provision: a smart investment with a social mission. In 2009, the WTO embarked on a pilot WASH marketing joint initiative with Lien Aid to improve the health and quality of life of rural Cambodians by improving access to water, sanitation and hygiene products through market-based approaches in four districts in Kampong Speu province of Cambodia. By 2010, the WTO made substantial progress in strengthening the supply chain for its sanitation marketing program and had built up its promotional social marketing campaigns. It has achieved its pilot SaniShop franchise project target of 4,000 latrines sold and are expanding the franchise to India by the end of 2011.

Tabs

Commitment

Bringing Sanitation to the Base of the Pyramid

Launched

2008

Est. Duration

1 year

Estimated Total Value

$1,200,000

Region

Asia

Countries

CAMBODIA

Commitment by

World Toilet Organization

Details

The World Toilet Organization (WTO) commits to developing a market ecosystem for sanitation by weaving together a fragmented set of players: suppliers, manufacturers, distributors, service providers, promoters, financiers, and--critically--policy makers, so that the 2.5 billion people at the 'base of the economic pyramid' (BoP) have access to sanitation. To do so, the WTO will establish a secretariat devoted to supporting this BoP initiative so that lower cost, better quality sanitation options, new jobs and sanitation micro-enterprises become more readily available.
WTO will begin working in Cambodia and India from 2009. WTO requests support for its Secretariat to implement these and other activities.
Cambodia
WTO will undertake formative market research in Cambodia focusing on supply chain strengthening, business development training and product R&D. First year activities (worth US$100,000 in Y1) are set to begin in January 2009.
India
WTO is currently developing a business plan for pilot work in India. Central to their Indian activities will be the development of a guide to market information on sanitation system components - sourcing and mapping suppliers, distributors and manufacturers and providing information on indicative costs for various technology options, including ecological sanitation options.
WTO plans to partner with local Indian NGOs and major Indian manufacturers to support field-based work on market research, including demand assessment and supply chain mapping. WTO will also seek to provide support for training in business development and R&D for improved product design, material replacement and transport logistics.
Pilot activities in India will begin in early 2009, subject to securing additional funds.

Background

Globally, 2.5 billion people lack access to basic sanitation. The urgent need for sanitation is a matter of human health, life and dignity - and market-based approaches can help meet this need. The more than 4 billion people at the base of the economic pyramid (BoP), of which the 2.5 billion toiletless are a subset, represent new markets and new business opportunities for local entrepreneurs and large corporations alike. At least 500 million new household sanitation systems are needed, as well as sanitation facilities in schools, religious buildings, marketplaces, transport centers and places of recreation. Considering per unit costs and multiplier effects for promotion, design, manufacture, distribution and transport, as well as the economic return on investment in sanitation (estimated as US$9 for every US$1 dollar invested), the global sanitation market is estimated at nearly US$1 trillion dollars.
WTO is well placed to take on a coordination role, linking market players and existing stakeholders into a better functioning sanitation market. By considering how sanitation market players can work together, creating demand, strengthening value chains, and innovating new products and business models, the WTO's BoP approach can help scale up sanitation provision: a smart investment with a social mission.
WTO recognizes that people at the base of the economic pyramid are discerning, intelligent, quality and brand conscious, prudent, able to choose and very entrepreneurial. By starting with the end users of sanitation systems, rather than taking a top-down single-technology approach, it is possible to find the right price point, design the right products, build supply chains and distribution networks and assist household financing. Most importantly, by starting at the base, we can identify approaches to doing business that are home grown and entrepreneurial, and that build the demand for sanitation by making toilets a desirable consumer item.
At the same time, WTO aims to attract larger market players to bring sanitation activities to scale, getting big business and social investors interested and active in the sanitation market.
WTO is well placed to take on a coordination role, linking market players and existing stakeholders into a better functioning sanitation market. By considering how sanitation market players can work together, creating demand, strengthening value chains, and innovating new products and business models, the WTO's BoP approach can help scale up sanitation provision: a smart investment with a social mission.
WTO recognizes that people at the base of the economic pyramid are discerning, intelligent, quality and brand conscious, prudent, able to choose and very entrepreneurial. By starting with the end users of sanitation systems, rather than taking a top-down single-technology approach, it is possible to find the right price point, design the right products, build supply chains and distribution networks and assist household financing. Most importantly, by starting at the base, WTO can identify approaches to doing business that are home grown and entrepreneurial, and that build the demand for sanitation by making toilets a desirable consumer item.
At the same time, WTO aims to attract larger market players to bring sanitation activities to scale, getting big business and social investors interested and active in the sanitation market.

Partnership Opportunities

SEEKING: financial resources, implementing partners, best practices information, media and marketing assistance. During CGI Asia, President Clinton inspired them with an idea to engage ESPN World Series of Poker to support WTO's fund-raising effort.
Partnership Opportunities: Corporate Partnerships
Donor/Funders
Pro-bono resources

Progress Reports

April 2011
- From 2008 to 2009, worked on WaterShed project in Cambodia with USAID to understand how to develop a good business model for delivering sanitation sustainably. This work include base-line studies and survey of people's rational and aspirational needs. Contributed to IDEO's design of an Easy Latrine together with IDE Cambodia.
-In 2010 WTO started a sanitation marketing program and trained the local poor to become manufacturers of toilets and sanitary treatment system selling at U$33 per household. The commitment also trained women living in poverty to become commission-based sales agents. The profit is $5 for the manufacturer and $2 commission for the sales agent per toilet sold. WTO provides the training for free and is funded by donors.
-In 2011. the WTO transformed it's sanitation marketing program into SaniShop, a social franchise. IDE Holland acted as a pro bono branding consultant and FT Consult as a franchise consultant. Pro bono lawyers in Hogan Lovell, Gibson & Dunn, etc were also involved.
-In 2011 Unilever has just announced a partnership with WTO to expand the SaniShop to India.
-In 2011 the WTO incubated BOP HUB, the First World Trade Center for the Poor and we received a U$600,000 grant from Singapore Economic Development Board.
April 2010
Ongoing project in Cambodia:
- Supply chain strategy development
- Technical and business development training
- Business Enabling Environment Strengthening
- Product development and packaging
- Baseline market data and market research
- Social marketing campaign strategy development
- Promotional materials development
- Direct marketing
- Identification and training of direct marketing agents
- Stakeholder engagement
Development of franchise model:
- Internal and external research, analysis and strategy development
- Stakeholder engagement - WTO is concurrently discussing with a number of private sector players who have expressed interest to support in the design of sanitation products that will increase not only the demand but also the desire to own a toilet.
April 2009
- Conducted studies in India and developed written strategy for driving market demand and habit change of people from open defecation to using toilets.
- Obtained $50,000 funding from USAID for Cambodia market development project. Project to achieve targets by September 2009.
- Obtained co-funding grant from Singapore Economic Development Board (EDB) for employment of 6 new staff for the Base of Pyramid Market, totaling $144,000 over next 3 years ending 2011. However, they need another $144,000 in co-funding.
- Started fund-raising through CGI Asia's network and expect more funding support soon.
- Submitted proposal for Li3n Challenge to raise $200,000 for our commitment
They have just completed shooting of an episode in Cambodia on bringing change of habit to sanitation practices as part of the 10 parts series ' Architect of Change' to be screened in France and Quebec in September (in French) and thereafter, it'll be open for broadcasting in other countries.